Global Companies Have Five Strategies for Matching Products and Their

question 70

Multiple Choice

Global companies have five strategies for matching products and their promotion efforts to global markets. A create new product emphasis refers to which type of strategy?

• A)product extension strategy
• B)product adaptation strategy
• C)dual adaptation strategy
• D)product invention strategy
• E)communication adaptation strategy

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account used to estimate and offset the amount of receivables that may not be collected.

Uncollectible Accounts

Accounts receivable that a company does not expect to collect due to customer defaults.

Bad Debt Expense

The estimated amount of credit sales that are not expected to be collected, representing potential loss to the company.

Allowance Method

An accounting technique used to account for bad debts, where estimated uncollectible accounts are expensed, adjusting the accounts receivable balance.